South Korea’s National Pension Scheme Invests in MicroStrategy

8月16日

In a significant development, South Korea's National Pension Scheme (NPS) has taken a substantial position in MicroStrategy (Nasdaq: MSTR) stocks, marking yet another strategic foray into the cryptocurrency sector. According to the 13F filings recently submitted to the U.S. Securities and Exchange Commission (SEC), the NPS acquired 245,000 shares of MicroStrategy during the second quarter of 2024. This investment, valued at 46 billion won ($33.7 million), highlights the growing institutional interest in cryptocurrency-related assets, particularly from major global players.

Riding the Crypto Wave: NPS's Strategic Play
This isn’t the first time the NPS has made a bold move into the U.S. crypto markets. Last year, the pension scheme made headlines by purchasing 282,673 shares of Coinbase (Nasdaq: COIN) during the third quarter of 2023. That investment has since tripled in value, with the COIN stock price soaring from $78 to $222 by the end of the second quarter of 2024. The NPS’s recent investment in MicroStrategy raises the question: Is the pension scheme anticipating a similar rally with MSTR stock?

MicroStrategy: The Ultimate Bitcoin Proxy
MicroStrategy (Nasdaq: MSTR) has long been recognized as the largest corporate holder of Bitcoin, currently holding over 1% of the total Bitcoin supply. This makes the company a unique proxy for investors seeking exposure to Bitcoin’s price movements. The NPS’s acquisition of MSTR stock aligns with this strategy, capitalizing on MicroStrategy’s strong ties to the cryptocurrency market.

Adding to the excitement, the U.S. SEC recently approved a leveraged MicroStrategy ETF (MSTX), issued by Defiance. This ETF offers investors 1.75x exposure to MicroStrategy’s daily stock returns, providing an innovative and regulated way to amplify exposure to Bitcoin through MicroStrategy. This new ETF has the potential to attract a broad range of investors looking to maximize their gains in the burgeoning crypto market.

Institutional Appetite for Bitcoin Grows
The NPS’s move is part of a broader trend of institutional investors increasing their exposure to Bitcoin and cryptocurrency-related assets. The launch of spot Bitcoin ETFs has provided a regulated and accessible way for institutions to invest in Bitcoin, and several U.S. state investment boards have seized the opportunity.

For instance, the State of Wisconsin Investment Board (SWIB) recently revealed significant exposure to the BlackRock Bitcoin ETF, continuing its Bitcoin ETF investments for two consecutive quarters. Similarly, the State of Michigan Retirement System disclosed a $6.6 million investment in ARK 21Shares Bitcoin ETF (ARKB) last month. Even city governments, such as Jersey City, have expressed interest in making Bitcoin investments via ETFs, as announced by Mayor Steven Fulop.

What’s Next for MicroStrategy and Bitcoin?
As more institutional players like the NPS seek exposure to Bitcoin, the demand for related stocks and ETFs is expected to grow. MicroStrategy’s position as a key Bitcoin proxy, coupled with the new leveraged ETF, could lead to further appreciation in MSTR stock, especially if Bitcoin continues its upward trajectory. Investors and market watchers will be keen to see whether the NPS’s bet on MicroStrategy pays off as handsomely as its previous investment in Coinbase.

In conclusion, the South Korea National Pension Scheme’s investment in MicroStrategy (Nasdaq: MSTR) shows the increasing confidence and interest from institutional investors in the cryptocurrency space. As Bitcoin and its associated financial products continue to gain legitimacy and attract large-scale investments, MicroStrategy (Nasdaq: MSTR) stands poised to benefit from its deep entrenchment in the crypto ecosystem.